The yen weakened against the dollar Tuesday, with separate market snapshots near ¥157.70 as investors awaited decisions this week from the Federal Reserve (Fed) and Bank of Japan (BoJ).
FXStreet recorded USD/JPY at about ¥157.70 at 01:58 UTC Tuesday, up just over 0.10% for the day. The outlet placed the pair's low in the previous week near ¥156. Reuters separately reported the yen down 0.16% at ¥157.73 per dollar in an Oct. 27 report. The figures came from different market snapshots.
Reuters attributed the yen's weakness to stronger risk appetite after technology shares rebounded, as well as pressure on the euro. Market participants expected no adjustment to the BoJ's 1.25% rate at this week's meeting, Reuters reported. The outlet said they also anticipated language preserving the option of further increases.
The dollar-yen pair had previously moved below 157 before recovering ahead of the same meetings, as EconoTimes reported.
At its Sept. 18 meeting, the BoJ voted 7-2 to set the uncollateralized overnight call rate at around 1.25%, effective Sept. 24. Preliminary BoJ data showed services producer prices rose 3.7% from a year earlier in September, compared with 3.5% in August; they also increased 0.3% from the previous month. The bank said future rate adjustments would depend on economic activity, prices and financial conditions. Its September statement also cited yen depreciation and high crude oil prices as factors contributing to price pressures.
The Fed's target range was 3.75% to 4.00% after its September decision. Its Oct. 27-28 meeting is scheduled to end with a policy statement at 2 p.m. ET Oct. 28 and a news conference at 2:30 p.m. ET. The U.S. Bureau of Economic Analysis (BEA) has scheduled the advance estimate of third-quarter gross domestic product and September Personal Income and Outlays for 8:30 a.m. ET Oct. 29. The BoJ's calendar lists its policy statement and October outlook for Oct. 30, without a release time.
